FactSet Fires on All Cylinders: Q3 2026 Results Demonstrate Unparalleled Growth and Innovation
FactSet, a leading provider of financial information and analytics, has once again delivered impressive results in its third quarter fiscal 2026 earnings call. The company's organic ASV growth accelerated for the fifth consecutive quarter, reaching 7.1% to $2.48 billion across all regions and client types.
Adjusted operating margin was a respectable 34%, reflecting the strategic investments made by FactSet this year. Adjusted diluted EPS was $4.53, up 6.1% year-over-year, further solidifying the company's position as a leader in the financial information and analytics space.
The key to FactSet's success lies in its four foundational strengths: connected data, embedded workflows, service excellence, and broad and deep distribution. These strengths are becoming increasingly valuable as clients deploy AI widely, driving growth and engagement trends this quarter. Sanok Viswanathan, Chief Executive Officer, emphasized the importance of these strengths during the earnings call.
"Our client engagement and growth trends this quarter show that our four foundational strengths are becoming even more valuable as our clients deploy AI widely," Viswanathan said. "Five example client wins from this quarter demonstrate the breadth and depth of our solutions and the tangible impact of strategic investments we've made in new products such as Managed Portfolio Services, deep sector content, and real-time data."
The five example client wins highlighted by FactSet include a mandate to deliver turnkey performance, risk, and reporting managed services to one of the largest global sovereign wealth funds. Other notable wins include an expanded engagement with a large global OCIO to provide comprehensive reporting and digital capabilities wrapped with managed services from subject matter experts.
A 5-year enterprise contract renewal at a major global bank was also secured, with increased scope to include more data consumption and deep sector content playing a key role. LPL Financial, the largest independent broker-dealer in the U.S., selected FactSet's real-time data platform to support their cloud-native trading application and intra-day portfolio P&L workflows.
Each of these five wins represents an existing client expanding their relationship with FactSet, underscoring meaningful room to grow within current relationships. As Viswanathan noted, "Last quarter, I shared the three priorities guiding a transformation in how we do business: commercial excellence, productivity improvement, and long-term strategy."
The commercial excellence initiative is resulting in stronger new business growth, retention, and expansion of ASV. FactSet's new website has seen improvements in top-of-funnel demand generation, with bounce rates improved by 8%, engagement increased by 8%, and prospects, marketing qualified leads, and sales qualified leads grew by double digits.
